operations plan Emil Alex Lucy Sweeney Andrew Siu Aaron Wong

Transcription

1 operations plan Emil Alex Lucy Sweeney Andrew Siu Aaron Wong

2 agenda 01 INTRODUCTION 02 CURRENT ANALYSIS 03 OPERATIONS STRATEGY 04 IMPLEMENTATION STRATEGY 05 RECOMMENDATIONS 06 CONCLUSION 07 DISCUSSION

3 introduction about bert s bites Bert s Bites is an artisanal food company, founded by Roberta Intrater, offering a uniquely blended snack of oats, corn flakes, almonds, and dried cranberries. why bert s bites? Her current operations are located in San Francisco, producing in a local kitchen and selling to local distributors, partners, and fairs as well as online. Her product tastes delicious and is beautifully packaged making it a wonderful addition to pantries, party trays, and desk tops. It s perfect for sharing and gift-giving.

4 introduction vision & mission VISION Our vision for Roberta and Bert s Bites is to develop Bert s Bites into a company with a revenue of at least $90,000 annually within 3 years, in order to operate with the proposed co-packer model paired with an office staff to support Roberta s operations. MISSION Bert s Bites is an artisanal snack perfect for gifting, gatherings, and, of course, snacking. Unlike its competitors, Bert s Bites is handmade in San Francisco, sourcing only the best ingredients made to perfection using Roberta s own recipe.

5 introduction goals and objectives Supply Chain And Capacity Grow supply chain and increase capacity by getting [Roberta] out of the kitchen. Better coordinate packaging with product. Be able to take pre-orders.

6 introduction goals and objectives Supply Chain And Capacity Grow supply chain and increase capacity by getting [Roberta] out of the kitchen. Better coordinate packaging with product. Be able to take pre-orders. Expand Business Expand business through new channels and improved marketing. Get into new marketplaces. Focus on gift-giving/hospitality customers.

7 introduction goals and objectives Supply Chain And Capacity Grow supply chain and increase capacity by getting [Roberta] out of the kitchen. Better coordinate packaging with product. Be able to take pre-orders. Expand Business Expand business through new channels and improved marketing. Get into new marketplaces. Focus on gift-giving/hospitality customers. Sell! Sell the Bert s Bites business (similar to what happened with Boom Chicka Pop).

8 current analysis business model canvas Value Proposition Customer Relationships Handmade, wholesome snack. Giving & saying thanks Personalized gifts & custom orders Unique, made in SF Corporations (especially hospitality industry) Bay Area locals and beyond Brand loyalty Packaged in delightful jars and bags Roberta & the brand Customer Segments Channels Word of mouth Website, social media Retail vendors & fairs

9 business model canvas KEY PARTNERS Fairmont Hotel David (Roberta s mentor) SFO CCA SF Made

10 current analysis ROBERTA S KEY ACTIVITIES: business model canvas

11 current analysis business model canvas KEY ORGANIZATIONAL RESOURCES Baking Assistant Accountant Graphic Designer Social Media/Web Assistant (Tentative)

12 business model canvas Prep Work Refrigeration Measuring Oven Ingredients Mixing Spreading Note: This does not include sourcing ingredients, unloading ingredients and equipment from car, prior clean up, loading finished inventory, etc. Mixing station Baking Baking trays

13 business model canvas REVENUE STREAMS Bert s Bites current revenue stream is managed by Roberta herself through her partnerships with retailers and distributors. Through these relationships, she receives repeat large orders steadily growing. There are online sales through an online shopping tool connected to her website which are also tracked and managed through the website.

14 current analysis business model canvas Cost Structure An analysis of Bert s Bites income statement from January to December 2016 showed a 10X revenue growth. From January to December 2017, total revenue reached 3X more than total revenues from The most profitable periods occurred during winter seasons, while the most profitable client was the large order acquired from the Fairmont in the month of January.

15 current analysis business model canvas Cost Structure An analysis of Bert s Bites income statement from January to December 2016 showed a 10X revenue growth. From January to December 2017, total revenue reached 3X more than total revenues from The most profitable periods occurred during winter seasons, while the most profitable client was the large order acquired from the Fairmont in the month of January. expenses Expenses are quite modest and may even be understated. If there are any improvements that can be met in cost reduction, it would be locating less costly production methods and materials for ingredients and packaging, and shipping costs.

16 current analysis business model canvas Cost Structure An analysis of Bert s Bites income statement from January to December 2016 showed a 10X revenue growth. From January to December 2017, total revenue reached 3X more than total revenues from The most profitable periods occurred during winter seasons, while the most profitable client was the large order acquired from the Fairmont in the month of January. expenses cash sales Expenses are quite modest and may even be understated. If there are any improvements that can be met in cost reduction, it would be locating less costly production methods and materials for ingredients and packaging, and shipping costs. Cash sales (which include in-person and large corporate orders) account for the majority of revenue, while online sales provide an even flow of revenue on a month-to-month basis.

17 SWOT ANALYSIS

18 current analysis SWOT analysis STRENGTHS High quality product Efficient workflow Established sourcing network Ability to customize orders

19 current analysis SWOT analysis STRENGTHS WEAKNESSES High quality product Limited storage capacity Efficient workflow Limited production capacity Established sourcing network Difficulty meeting surges in demand Ability to customize orders Roberta has no time!

20 current analysis SWOT analysis STRENGTHS WEAKNESSES High quality product Limited storage capacity Efficient workflow Limited production capacity Established sourcing network Difficulty meeting surges in demand Ability to customize orders Roberta has no time! OPPORTUNITIES Scalability Potential for online growth Expansion of product

21 current analysis SWOT analysis STRENGTHS WEAKNESSES High quality product Limited storage capacity Efficient workflow Limited production capacity Established sourcing network Difficulty meeting surges in demand Ability to customize orders Roberta has no time! OPPORTUNITIES THREATS Scalability Possibility of missing out on growth Potential for online growth opportunities because of production Expansion of product constraints

22 FUTURE OPERATIONS STRATEGY

23 operations strategy value proposition Future Evaluation of Brand Value. Intellectual Property One of the greatest challenges for Bert s Bites upon Roberta exiting the production side of the operations is maintaining and controlling the consistency of the output and quality the goods. While Bert s Bites might not own the intellectual property rights to Roberta s original recipe, it is certainly an intellectual advantage over the industry and current and future competitors.

24 operations strategy value proposition Future Evaluation of Brand Value. Intellectual Property Brand Recognition One of the greatest challenges for Bert s Bites upon Roberta exiting the production side of the operations is maintaining and controlling the consistency of the output and quality the goods. While Bert s Bites might not own the intellectual property rights to Roberta s original recipe, it is certainly an intellectual advantage over the industry and current and future competitors. Bert s Bites is lacking in brand recognition. Their online and social media presence is lacking. The visual communication of the brand is inconsistent across mediums and formats. It is only recognizable to current customers while even those customers do not discern certain branding aspects.

25 operations strategy value proposition Future Evaluation of Brand Value. Intellectual Property Brand Recognition Product Diversification One of the greatest challenges for Bert s Bites upon Roberta exiting the production side of the operations is maintaining and controlling the consistency of the output and quality the goods. While Bert s Bites might not own the intellectual property rights to Roberta s original recipe, it is certainly an intellectual advantage over the industry and current and future competitors. Bert s Bites is lacking in brand recognition. Their online and social media presence is lacking. The visual communication of the brand is inconsistent across mediums and formats. It is only recognizable to current customers while even those customers do not discern certain branding aspects. Customers want products that are adapted to their dietary restrictions and needs. Roberta has successfully tested these recipes and should now put them into production. Bert s Bites should continue to diversify their product through limited edition packaging.

26 operations strategy customer segments & relationships Specifically define customer segment to better understand their needs. Distinguish among customer types (i.e. individual single-order customers and large corporate clients) and then further define specifics within those customer segments. For example, what kind of customers are going to fairs, what kind of experience do they want, and what are their needs that will likely cause them to engage with Bert s Bites in the future? Maintain the Bert s Bites brand while still leveraging partnerships. Simple things such as putting the Bert s Bites sticker on top of the jar and the customer s logo on the tag attached to ribbon. The ribbon gets put aside fairly quickly but the jar of Bert s Bites might sit on someone s desk, etc. for longer. Not only will that customer be reminded of Bert s Bites through the branding of the jar every time they reach in for a snack but passersby will see it as well. Building relationships with individual customers vs. corporate clients require different strategies.

27 operations strategy channels Social Media Bert s Bites has little social media presence. They need to utilize it as a marketing tool to gain brand recognition and capture new customers. Their social media accounts should connect to their website, campaigns, marketing collateral and vice versa.

28 operations strategy channels Social Media E-Commerce Bert s Bites has little social media presence. They need to utilize it as a marketing tool to gain brand recognition and capture new customers. Their social media accounts should connect to their website, campaigns, marketing collateral and vice versa. Online sales are flat and most orders are made by returning customers. Bert s Bites needs to improve the customer experience of their website.

29 operations strategy channels Social Media E-Commerce Subscription Bert s Bites has little social media presence. They need to utilize it as a marketing tool to gain brand recognition and capture new customers. Their social media accounts should connect to their website, campaigns, marketing collateral and vice versa. Online sales are flat and most orders are made by returning customers. Bert s Bites needs to improve the customer experience of their website. Offer a subscription service or club membership where product is delivered on a routine basis. Great for gifting!

30 operations strategy key partners PARTNER ENTERPRISES Hotels such as the Fairmont and other corporate organizations have proven to be both customers as well as channels to reach new customers. Partnerships such as these bring in revenue and promote growth of company. CO-PACKER There are many options for co-packers Roberta can take use of. It is important that Roberta builds a strong relationship with the co-packer that she chooses to use. It is important that the co-packer have a flexible option for Bert s Bites productions. When orders need to turn around quickly, or if they need to be changed, a good relationship with the manager will help. Additional suggested pricing options are discussed in the resources portion.

31 operations strategy ROBERTA S KEY ACTIVITIES: Key activities

32 operations strategy key resources Organizational Design Roberta Product Manager Inventory Manager Sales Manager Marketing Manager

33 operations strategy cost structure Facilities Storage Ingredients Instead of paying for each hour operating at the JCC, the co-packer model will either be a lump fee for each quarter s production. With the co-packer, we recommend that Bert s Bite pay by shelf space instead of a lump sum. Using the co-packer model, Roberta is not limited to her current suppliers either. She is able to negotiate with suppliers that have a larger minimum order. Packaging & Shipping Employees Instead of individually packaging, and shipping every order, these costs will be lumped into the costs of the co-packer model. They may have services that include printing labels and producing the packaging. Using the co-packer model will free up capital and attention from Roberta. Roberta will be able to manage an office team including a social media assistant, graphic designer, accountant and product manager.

34 operations strategy revenue BRAND The brand itself should be contagious and basically sell itself. People will be asking for Bert s Bites by name.

35 operations strategy revenue BRAND PARTNERSHIPS The brand itself should be contagious and basically sell itself. People will be asking for Bert s Bites by name. The bigger customers that have the largest orders and act as the main income for Bert s Bites are also the biggest repeat customers. These are the partnerships that Roberta are building and securing orders from, year after year.

36 operations strategy revenue BRAND PARTNERSHIPS The brand itself should be contagious and basically sell itself. People will be asking for Bert s Bites by name. The bigger customers that have the largest orders and act as the main income for Bert s Bites are also the biggest repeat customers. These are the partnerships that Roberta are building and securing orders from, year after year. FAIRS The fairs are a part of revenue in order to make small sales, but also to secure new and bigger partnerships. We recommend that Roberta focus her efforts on larger shows that will reach bigger retailers and distributors to partner with.

37 operations strategy revenue BRAND PARTNERSHIPS The brand itself should be contagious and basically sell itself. People will be asking for Bert s Bites by name. The bigger customers that have the largest orders and act as the main income for Bert s Bites are also the biggest repeat customers. These are the partnerships that Roberta are building and securing orders from, year after year. FAIRS ONLINE The fairs are a part of revenue in order to make small sales, but also to secure new and bigger partnerships. We recommend that Roberta focus her efforts on larger shows that will reach bigger retailers and distributors to partner with. The online portion provides Bert s Bites with consistent income, month to month. By growing this channel, she will be able to support her basic operations.

38 FUTURE IMPLEMENTATION STRATEGY

39 implementation timeline PHASE ONE Stay in current kitchen and ramp up production. Pay by hour, find a long term storage space, hire more people, and stay with current suppliers

40 implementation timeline PHASE ONE Stay in current kitchen and ramp up production. Pay by hour, find a long term storage space, hire more people, and stay with current suppliers PHASE TWO Move to Co-packer to ramp up production, the co-packer charges a quarterly flat rate based on that quarter's order. They provide storage, workers, and managers, but you provide all the supplies.

41 Implementation timeline PHASE ONE Stay in current kitchen and ramp up production. Pay by hour, find a long term storage space, hire more people, and stay with current suppliers PHASE TWO Move to Co-packer to ramp up production, the co-packer charges a quarterly flat rate based on that quarter's order. They provide storage, workers, and managers, but you provide all the supplies. PHASE THREE Move to Co-packer to ramp up production, the co-packer charges an annual flat rate and days operating. They provide storage, workers, and managers and all the supplies.

42 Implementation strategy DASHBOARD Facilities Cost Production Cost Margin Goal Labor and Administration Cost Product Sales Goals Product Sales Contribution Balance Sheet Income Statement

43 recommendation 1 strategic planning Dashboard Dashboard that evaluates and calculates business structures and operations including costs, internal organizational metrics, etc.

44 recommendation 1 strategic planning Dashboard Calendar Dashboard that evaluates and calculates business structures and operations including costs, internal organizational metrics, etc. Calendar of future supply chain plan based on growth analysis

45 recommendation 1 strategic planning Dashboard Calendar Goals Dashboard that evaluates and calculates business structures and operations including costs, internal organizational metrics, etc. Calendar of future supply chain plan based on growth analysis Monthly, quarterly and annual sales goals

46 implementation strategy Customer managing organizational logistics Sales Marketing Product Co-packer

47 implementation strategy managing organizational logistics Buying strategy Places order Customer Sales Relationship management Product Meet sales requirement Identify customer opportunities Cost negotiation Quality control IP protection Delivery recipes Co-packer Satisfy order quantities Develop engaging strategy Marketing Execute engagement strategies Report trending customer needs and wants Sourcing Baking Packaging Shipping

48 recommendation 2 management Implement dashboard tool for hiring, internal organization metrics, and costs

49 recommendation 2 management Implement dashboard tool for hiring, internal organization metrics, and costs Co-Packer Relations

50 recommendation 2 management Implement dashboard tool for hiring, internal organization metrics, and costs Co-Packer Relations Supply and Sourcing Relations

51 implementation strategy 1. Leverage partnerships with other businesses (i.e. Fairmont) while still maintaining the Bert s Bites brand increasing brand value

52 implementation strategy increasing brand value Leverage partnerships with other businesses (i.e. Fairmont) while still maintaining the Bert s Bites brand Multiple Channels of Marketing through social media,

53 implementation strategy increasing brand value Leverage partnerships with other businesses (i.e. Fairmont) while still maintaining the Bert s Bites brand Multiple Channels of Marketing through social media, Making the brand self-sufficient so that it will maintain the value even if Roberta is not directly a part of it

54 implementation strategy increasing brand value Communication Flow Blog Website Instagram Facebook

55 conclusion Bert s Bites has a lot of potential to becoming the next big luxury snack. With the right brand, supply chain, and relationships, Roberta can manage operations without being in production herself. Using our metrics, timeline, and planning, she can grow her team to have a fully self-functioning production department, marketing department, and sales department. This plan would help her attract investors, gain capital, and scale!

56 THANK YOU!